Everfi Final Test Answers

The amount owed for borrowing money

Answer: Interest

To earn as much interest as possible, you should open a savings account that earns _____ interest and has the ____ interest rate

Answer: compound; highest

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Answer: Compounding daily

Which is a type of savings vehicle?

Answer: Certificate of Deposit and Money market account

Which is generally true about savings vehicles?

Answer: People should evaluate different forms of savings vehicles based on their needs

Which savings vehicles usually require a high minimum balance?

Answer: Certificate of Deposit (CD)

Which account will give you the LEAST access to your money?

Answer: Certificate of Deposit (CD)

The purpose of a budget is to:

Answer: Help you plan how you will spend the money you earn or receive

When it comes to saving money, what is a good rule of thumb?

Answer: Put aside money for savings each month

The 3 parts of the Federal Reserve System are the Reserve Banks, the Federal Open Market Committee (FOMC), and the:

Answer: Board of Governors

Which is NOT one of the responsibilities of the Federal Reserve?

Answer: Establishing the federal budget

Which is a unique feature of credit unions?

Answer: They are typically owned and run by their members and limit membership to certain people of groups

Which type of account is typically the MOST liquid?

Answer: checking account

Savings accounts usually offer ____ interest rates than checking accounts. It is ____ to access your money in a savings account than in a checking account.

Answer: Higher; harder

What part of a check is the LEAST important?

Answer: Memo line

Which represent typical account fees?

Answer: ATM, Service, and Minimum balance fee

What’s the best strategy for avoiding ATM fees?

Answer: Only use ATMs in your bank’s network

What’s the purpose of balancing or monitoring your checking account?

Answer: To help you calculate how much money you have in your account

The best way to ensure the accuracy and safety of your accounts is to:

Answer: monitor your online accounts regularly

Which payment types require you to pay upfront?

Answer: Money order, cashier’s check, pre-paid card

Which statement comparing debit cards to credit cards is true?

Answer: debit cards allow you to draw funds directly from your checking account

Which payment method typically charges the highest interest rates?

Answer: Payday loans

What payment type can help you stick to a budget?

Answer: Debit cards